TransCanada Finesses Complex Transfer of North Baja Pipeline Assets in Order to Bolster Capital Spending Plans

摘要

On 5/20/09 TransCanada Corp. announced an agreement to sell North Baja Pipeline, LLC to partner TC PipeLines, LP. TransCanada's affiliate TC PipeLines GP, Inc. (the General Partner) agreed to amend its Incentive Distribution Rights (IDR) with the Partnership. TransCanada acquired the North Baja Pipeline System in 2004 and will continue to operate the pipeline following the transfer of ownership. The system is an 80-mile natural gas pipeline (the U.S. portion of a 220-mile system that extends into Mexico) that extends from southwestern Arizona to a point on the California/Mexico border and connects with a natural gas pipeline system in Mexico. North Baja consists of 30- and 36-inch diameter pipeline with a capacity of 600 MMcf/d and contract terms reported to extend on average to 2026. The aggregate consideration received from the Partnership will include a combination of cash and common units totaling approximately US$395 million. TransCanada specifically will receive approximately US$200 million in cash and 6,371,680 common units of the Partnership. The close of this transaction is expected by the end of second quarter 2009. Then TransCanada's ownership of the Partnership will increase to 42.6%.